How much is the total tax payable after salary sacrifice

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Alfred and Julie are married and have two children. They do not have private health cover. Julie is a homemaker and Alfred is an Accountant at a large accounting firm. Alfred has an annual remuneration package of $101,000 and $4,000 per annum in allowable deductions. Alfred is concerned about saving for retirement and has decided to salary sacrifice $7,500 annually to superannuation. Considering all the Medicare levies and offsets, answer the following questions.

Problem a) How much is the total tax payable before salary sacrifice arrangement?

Problem b) How much is the total tax payable after salary sacrifice arrangement?

Problem c) Is it worthwhile for Alfred to salary sacrifice $7,500? Explain.

Reference no: EM132946514

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